ABUJA/Nigeria: In a groundbreaking development poised to transform Nigeria’s energy landscape, the Delta State Government, Nigerian National Petroleum Company Limited (NNPC), and UTM Offshore Ltd finalized a Shareholders Agreement on Tuesday for the creation of Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) project.
The momentous signing ceremony, held at the NNPC Towers in Abuja, saw Secretary to the State Government, Dr. Kingsley Emu, and Solicitor General Mr. Omamuzo Erebe representing the Delta State Government. On behalf of NNPC Limited and UTM Offshore, Group Chief Executive Officer Mr. Mele Kyari and Group Managing Director Mr. Julius Rone inked the agreement, solidifying their commitment to this pioneering venture.
As per the agreement, the Delta State Government secures an eight percent stake, while NNPC Limited and UTM Offshore claim 20 percent and 72 percent shares, respectively, in the monumental FLNG project.
Speaking at the event, Governor Sheriff Oborevwori of Delta State hailed the UTM FLNG Project as a trailblazing initiative, marking the maiden endeavor of its kind undertaken by an indigenous private company within Nigeria.
Emphasizing the strategic significance of the project to the national economy, Governor Oborevwori stressed the state’s substantial gas reserves, citing this investment as a pivotal step. With 40% of Nigeria’s proven gas reserves situated in Delta State, the governor asserted the venture’s significance as a judicious investment.
“The dividend that this UTM FLNG will generate will advance the socio-economic development of our great state,” Governor Oborevwori remarked, underscoring its potential to produce over 300,000 metric tonnes of LPG dedicated to the domestic market. Furthermore, he highlighted the project’s role in mitigating environmental hazards by curbing gas flaring, improving women’s health through a transition from kerosene and firewood to cleaner energy, and fostering job creation for the state’s youth population.
Expressing optimism about the project’s trajectory, Governor Oborevwori anticipated the commencement of construction in the coming year, heralding a significant milestone in the project’s development.
Acknowledging the foresight of former Governor Senator Ifeanyi Okowa and lauding the collaboration of stakeholders, Governor Oborevwori commended regulators, Afreximbank for financing arrangements, and the dedicated staff of Delta State Investment and Development Agency (DIDA) for their pivotal contributions.
The Group Chief Executive Officer of NNPC, Mr. Mele Kyari, commended Governor Oborevwori and the Delta State Government for their advocacy and investment in gas projects, emphasizing the pivotal role of collaboration in driving gas utilization and investment in Nigeria’s vital industry.
Echoing these sentiments, Minister of State Petroleum Resources (Gas) Hon. Ekprikpe Ekpo stressed the urgency of capitalizing on Nigeria’s extensive gas reserves for economic advancement.
Speaking optimistically about the project’s future, UTM’s Group Managing Director, Mr. Julius Rone, anticipated the Final Investment Decision (FID) to be made by the first quarter of 2024. Extolling the Delta State Government’s equity investment, Rone highlighted its potential to create revenue streams, bolster infrastructure development, and catalyze employment opportunities for the state’s youth.
The signing ceremony represents a pivotal step in the realization of Nigeria’s indigenous FLNG, setting the stage for transformative impacts on the nation’s economy, environment, and socio-economic fabric.
